Why Net New MRR is important

Having a nice chart of MRR growth over time is great. But do you really know what’s driving that growth?

The real insight comes from understanding these specific drivers.

Is customer churn decreasing?

Is customer upgrade velocity increasing?

What will your MRR be 6 months later?

The last question is perhaps the most revealing. If you turned off the top of your funnel, would revenue remain constant, or would it tank? The most stable SaaS companies have very low churn, which means that most of their revenue from new customers contributes directly to increasing MRR.

Breaking your MRR into these 4 categories is key to understanding what holes you should be patching and what to focus on.